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Target Markets Program Administrators Association Program Administrator Klein Insurance Services, Inc. The Klein family roots have been firmly entrenched in the property and casualty insurance business for 85 years. Julius Klein was a founding father of the Newark, New Jersey, firm of Rosenthal & Klein back in 1921. Julius’s son, Scott, says he grew up right in the midst of the insurance business. Scott’s entry into the program administration area began in 1991 when he started Klein Insurance Services, Inc. (KIS). KIS is now a $30 million premium operation serving the hospitality industry. “After I finished college,” says Klein, “I went to work for a short while before enrolling in a master’s program at Cornell University. I majored in hotel administration there. After completing my degree I joined my father in an insurance consulting service. My father had a great deal of experience in the international insurance market, and we supplied consulting advice on a fee basis for U.S.-based multinationals with overseas operations. Although we were quite successful, around 1990 I decided that I wanted to start an organization that was asset-based, rather than a fee-for-service enterprise. My knowledge of the hospitality industry, and my insurance expertise, were a natural fit for starting up an insurance program for hotels.” The Klein Insurance Services hospitality program is designed for risks whose primary business is full-service hotels or motels. KIS targets national chains and upscale properties, with an underwriting focus on well-constructed, well-managed, profitable operations. Coverages include property, general liability, umbrella liability, employment practices liability and other standard forms of insurance. “Risk selection is the key to profitability,” Klein says. “Before we write the coverage, we want to know if the hotel’s management or owners typically practice preventive maintenance instead of merely awaiting breakdowns. Water damage is the worst exposure facing hotels, especially in hurricane-prone regions. We want to ascertain that the roof is properly maintained so that it does not peel back in a storm. Are windows strong enough to withstand gale force winds? Hotels with casinos, or those that conduct hazardous activities on their properties, such as horseback riding and winter sports, do not meet our underwriting guidelines. Klein Insurance Services is not a market for substandard risks.” As a key part of its hotel program’s underwriting requirements, Klein stresses that KIS makes certain that risks are fully compliant with life safety codes, that no diving boards or slides are on the property, that every cooking surface is UL 300 compliant, and that hardwired smoke detectors are installed in all rooms and hallways. “Because hotel exposures can be extremely volatile,” he says, “you must practice proper risk selection.” Klein Insurance Services, Inc., now also writes workers compensation through PMA Group, and writes monoline for accounts over $50,000 and for smaller accounts connected with other lines of business. “KIS continues to expand, we’re happy to say,” Klein says, “and we’re looking forward to doing additional affinity programs with national franchises.” * |
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